FBAR, any new or changed requirements?

[desi485]

I am getting ready to file the FBAR for 2011. Just to check with everyone if there is any new or changed requirement that anyone is aware of? As always, my tax consultant doesn't have a clue. :confused: Thank you in advance for your help.

[insbaby]

I am getting ready to file the FBAR for 2011. Just to check with everyone if there is any new or changed requirement that anyone is aware of? As always, my tax consultant doesn't have a clue. :confused: Thank you in advance for your help.

You can file online now...

https://bsaefiling1.fincen.treas.gov/PublicAccess

Register as a user, once you get confirmation, you can file online. The site will guide you, the form is same as before except the header.

[desi485]

You can file online now...

https://bsaefiling1.fincen.treas.gov/PublicAccess

Register as a user, once you get confirmation, you can file online. The site will guide you, the form is same as before except the header.

Thank you so much! I didn't know FBAR is online now.

I am doing this for 4 - 5 years now. Hopefully everyone is filling FBAR as required by law. If anybody is not sure what is FBAR do a quick google search or search on IV and you will find lots of information. If you have a bank account in india or your home country, most likely you must file FBAR. Good Luck!

[madhu345]

Thank you so much! I didn't know FBAR is online now.

I am doing this for 4 - 5 years now. Hopefully everyone is filling FBAR as required by law. If anybody is not sure what is FBAR do a quick google search or search on IV and you will find lots of information. If you have a bank account in india or your home country, most likely you must file FBAR. Good Luck!

Do we need to declare Indian Resident Accounts too?

[mnkaushik]

I am getting ready to file the FBAR for 2011. Just to check with everyone if there is any new or changed requirement that anyone is aware of? As always, my tax consultant doesn't have a clue. :confused: Thank you in advance for your help.

My Tax consultant mentioned this form - Do I need to file Form 8938, “Statement of Specified Foreign Financial Assets�? (http://www.irs.gov/businesses/corporations/article/0,,id=251217,00.html) . It seems there is new 8938 form that we need to submit as part of your income tax. I have not really looked into it.

[desi485]

My Tax consultant mentioned this form - Do I need to file Form 8938, “Statement of Specified Foreign Financial Assets�? (http://www.irs.gov/businesses/corporations/article/0,,id=251217,00.html) . It seems there is new 8938 form that we need to submit as part of your income tax. I have not really looked into it.

Is this a different (additional) than FBAR?

[ajaybhardwaj228]

Is this a different (additional) than FBAR?

As per the Form 8938 we need to report only in case your asset is more than 100K (filing jointly) and 50K (unmarried). Does it mean that if your asset is less than this limit and even though are you are getting some interest, no need to report?

Does it overtake FBAR?

[mnkaushik]

As per the Form 8938 we need to report only in case your asset is more than 100K (filing jointly) and 50K (unmarried). Does it mean that if your asset is less than this limit and even though are you are getting some interest, no need to report?

Does it overtake FBAR?

I don't know but it looks like you definitely need to fill this form out with your Income tax this year based on your asset limit as you have mentioned. Last year FBAR for was not part of our tax but this year it looks like this form is part of your IT.

[mnkaushik]

Yahoo has a page for 10 things about this year's tax and point number 7 - talks about form 8938, here is the link - 10 Things You Should Know About Your 2011 Taxes - Yahoo! Finance (http://finance.yahoo.com/news/10-things-know-2011-taxes-184755314.html)

[desi485]

Yahoo has a page for 10 things about this year's tax and point number 7 - talks about form 8938, here is the link - 10 Things You Should Know About Your 2011 Taxes - Yahoo! Finance (http://finance.yahoo.com/news/10-things-know-2011-taxes-184755314.html)

Thank you for sharing the info. Appreciated.

Anyone who already filed tax this year? How did you filed this form? Can it be filed online?

[Project_A]

As per the Form 8938 we need to report only in case your asset is more than 100K (filing jointly) and 50K (unmarried). Does it mean that if your asset is less than this limit and even though are you are getting some interest, no need to report?

Does it overtake FBAR?

I think this form is for only for financial assets (like bank, pension, mutual funds, stock etc) and does not include real estate assets.

Also, what are the guidelines on the life insurance policy (taken outside of US)? Should we report premiums paid or the insurance value which could be huge depending on the policy?

[sharathmsc]

I have the same questions as Project_A has asked. I got to know about FBAR last year around september which was too late and this time for 2011, I want to file it.

As I checked my accounts, I have to file for years from 2008 to 2011 atleast, but do I need to retrofit all the years tax forms updating the interest that will be a big mess. Is there a simple way? I mean the interste income for the year when converted in dollars will be very less around 50$.

Life insurance policies and ULIPs, how can you claim any interest as you will not get the money until the policy is matured.

Please advise.

[LondonTown]

Does anyone know if Turbo Tax prompts for 'this form' in their web based step-by-step self tax filing?

[nikh]

I recently filed taxes using turbotax, it asked question whether I owned >10K in foriegn accounts. In my case, the answer was NO, so, I do not whether it would have directed me appropriate form if I had said YES.

[nikh]

The interest or capital amount in dollars value fot NRE accounts will depend on exchange rate and te deposit/investment is associated with volatility/risk (unlike CDs in USA).

So, does this interest on NRE accounts be charged at regular tax rate or capital gain tax rate?

[ebizash]

The interest or capital amount in dollars value fot NRE accounts will depend on exchange rate and te deposit/investment is associated with volatility/risk (unlike CDs in USA).

So, does this interest on NRE accounts be charged at regular tax rate or capital gain tax rate?

I have Citi NRI account and they always issue me a 1099-INT for the annual interest earned on the account. As 1099-INT income is considered and reported as regular income, I think it is taxed at regular tax rate. But I am no expert at taxation or fin regulations.

[number30]

The interest or capital amount in dollars value fot NRE accounts will depend on exchange rate and te deposit/investment is associated with volatility/risk (unlike CDs in USA).

So, does this interest on NRE accounts be charged at regular tax rate or capital gain tax rate?

Interest is added to your regular income and taxed at your regular rate. You can deduct foreign taxes paid. For the exchange rates you will have to get it from IRS site.

Yearly Average Currency Exchange Rates (http://www.irs.gov/businesses/small/international/article/0,,id=206089,00.html)

[desi485]

I have the same questions as Project_A has asked. I got to know about FBAR last year around september which was too late and this time for 2011, I want to file it.

As I checked my accounts, I have to file for years from 2008 to 2011 atleast, but do I need to retrofit all the years tax forms updating the interest that will be a big mess. Is there a simple way? I mean the interste income for the year when converted in dollars will be very less around 50$.

Life insurance policies and ULIPs, how can you claim any interest as you will not get the money until the policy is matured.

Please advise.

I filed amended returns for last 3 years when I came to know about this form few years back. I did not have to file much tax as I had TDS in india, but whatever my tax consultant calculated, I Paid all. It is always better to follow the law and keep your papers perfect.

Most of you already know the penalties and consequences of not filing FBAR.:eek:

[rpat1968]

Overseas Interest income is treated like the interest income earned in US. It is not treated as Capital Gains. When filing taxes you need to declare overseas interest income and the overseas tax (Also called as TDS - Tax deducted at source) paid. You will get credit for the TDS paid overseas hence reducing your US tax burden on the overseas Interest Income.

If you are filing FBAR it is necessary to declare your overseas interest income , capital gains etc when filing yearly tax returns. Obviously you need to convert the income in US $ as of 31st Dec Rupee to $ exchange rate.

I have been doing this for last 5 years without any issues.

The interest or capital amount in dollars value fot NRE accounts will depend on exchange rate and te deposit/investment is associated with volatility/risk (unlike CDs in USA).

So, does this interest on NRE accounts be charged at regular tax rate or capital gain tax rate?

[nikh]

rpat1968,

Thanks for the details. Very helpful info for many of us.

One question, the interest rates on NRE deposits are very attractive now. Would it be wise to keepe those deposits below 10K to avoid FBAR filing? Or do you think, FBAR filing is no big deal and should not be a factor in making decisions on overseas investments.



Overseas Interest income is treated like the interest income earned in US. It is not treated as Capital Gains. When filing taxes you need to declare overseas interest income and the overseas tax (Also called as TDS - Tax deducted at source) paid. You will get credit for the TDS paid overseas hence reducing your US tax burden on the overseas Interest Income.

If you are filing FBAR it is necessary to declare your overseas interest income , capital gains etc when filing yearly tax returns. Obviously you need to convert the income in US $ as of 31st Dec Rupee to $ exchange rate.

I have been doing this for last 5 years without any issues.

[rpat1968]

Depends on the type of Deposit NRE or NRO.
NRO is Rupee FD account and current interest rates are 9.75% (aging depends on bank and term of deposit)
NRE is $ denomination account and you don't get more than 2.5%.

TDS on NRO is 30% unless you apply to IRS through Form 6166 (Form 6166 - Certification of U.S. Tax Residency) and send the certifcate to you bank to get concession of 50% on TDS in India. So on a NRO FD you will effectively make at least 8.25% after TDS. You still need to pay tax in US on this 8.25% interest income.

In either of the FD types you are making more money on your saving than what you current get in US (Max 0.5% on CD's) the only hassle is getting the banks to send you Statements and TDS certificates in time for you to file your taxes. (Because of financial year ending differences it is a big hassle to get the overseas bank to send you the TDS statements).

rpat1968,

Thanks for the details. Very helpful info for many of us.

One question, the interest rates on NRE deposits are very attractive now. Would it be wise to keepe those deposits below 10K to avoid FBAR filing? Or do you think, FBAR filing is no big deal and should not be a factor in making decisions on overseas investments.

[rpat1968]

FBAR is a safety. If you are caught then there is heavy penalty to pay and also I will affect you immigration status too.
For past few years IRS has been cracking down on FBAR violations and hence you see all the CPA's now are helping foreigners with FBAR filings.
You have to know that the banks here need to report to IRS transaction over some limit. Also all overseas transfers are reported and closely watched and can trigger alerts to IRS.

rpat1968,

Thanks for the details. Very helpful info for many of us.

One question, the interest rates on NRE deposits are very attractive now. Would it be wise to keepe those deposits below 10K to avoid FBAR filing? Or do you think, FBAR filing is no big deal and should not be a factor in making decisions on overseas investments.

[spicy_guy]

Depends on the type of Deposit NRE or NRO.
NRO is Rupee FD account and current interest rates are 9.75% (aging depends on bank and term of deposit)
NRE is $ denomination account and you don't get more than 2.5%.

TDS on NRO is 30% unless you apply to IRS through Form 6166 (Form 6166 - Certification of U.S. Tax Residency) and send the certifcate to you bank to get concession of 50% on TDS in India. So on a NRO FD you will effectively make at least 8.25% after TDS. You still need to pay tax in US on this 8.25% interest income.

In either of the FD types you are making more money on your saving than what you current get in US (Max 0.5% on CD's) the only hassle is getting the banks to send you Statements and TDS certificates in time for you to file your taxes. (Because of financial year ending differences it is a big hassle to get the overseas bank to send you the TDS statements).

I heard, the interest earned from NR<b>E</b> account is not taxable.

[mnkaushik]

I heard, the interest earned from NR<b>E</b> account is not taxable.

That is in India. Difference between FBAR and paying your taxes. You do not have to file FBAR if the sum of the amount in your bank accounts, stocks, mutual funds are less than 10K but you should ALWAYS pay taxes on the interest or dividends that you earn. FBAR is just to track your investment outside of US. Even if you have less than 10K in India, you still need to pay taxes on the interest or dividend that you have earned on those assets.

[mnkaushik]

Depends on the type of Deposit NRE or NRO.
NRO is Rupee FD account and current interest rates are 9.75% (aging depends on bank and term of deposit)
NRE is $ denomination account and you don't get more than 2.5%.

TDS on NRO is 30% unless you apply to IRS through Form 6166 (Form 6166 - Certification of U.S. Tax Residency) and send the certifcate to you bank to get concession of 50% on TDS in India. So on a NRO FD you will effectively make at least 8.25% after TDS. You still need to pay tax in US on this 8.25% interest income.

In either of the FD types you are making more money on your saving than what you current get in US (Max 0.5% on CD's) the only hassle is getting the banks to send you Statements and TDS certificates in time for you to file your taxes. (Because of financial year ending differences it is a big hassle to get the overseas bank to send you the TDS statements).

Actually you are able to get 9.25% on NRE FDs. This was done by almost all banks when the value of rupee hit %4 to a dollar. This was to get money flowing into India. SBI gave 9.25% for 10 years, ICICI has it for 8.75%, Axis bank for a very brief period had it for 9.5% . I don't know long these rates will last for NRE.

Also, your calculation of NRO and TDS, you right about the 8.25% but you can also get back the TDS money, if you file your Indian taxes and your income is less than the taxable slab. Even tough the compounding interest will work at 8.25% as you have mentioned, you can still get the rest of TDS by filing your Indian taxes.

[rpat1968]

I did the same about 5 years ago. When I decided to file the FBAR I amended my tax returns and refiled US taxes to include my overseas interest and capital gains income.
If you have not declared FBAR then the best solutions is to amend previous years tax returns to include your interest income and then file FBAR.

I filed amended returns for last 3 years when I came to know about this form few years back. I did not have to file much tax as I had TDS in India, but whatever my tax consultant calculated, I Paid all. It is always better to follow the law and keep your papers perfect.

Most of you already know the penalties and consequences of not filing FBAR.:eek:

[gclabor07]

Do you have to file FBAR if you sent money to your parents or relatives for their expenses, let's say house renovation or car purchase? I've sent less than 10K over the past few years. I personally do not have any bank acct in India, NRE or Otherwise. So, I always sent money to my parents whenever they needed it.

Also, I just now opened a LIC Policy on my recent trip to India. As the premiums accumulate to $10K on this policy, do I then file FBAR?

[rpat1968]

As mentioned in my previous post you can get Certification of U.S. Tax Residency (Form 6166 - ) from IRS and send it to your bank with other details (banks will provide what other documents they need) and they will start deducting a TDS at 15.45% instead of the regular 30.9%.

Also now ICICI bank gives you access to your TDS details directly from Indian Income Tax
department site. (this is only if you have provided a PAN number to your bank so that tHe TDS info is properly updated to your account)

I was not aware of filing income tax returns in India to get a refund of TDS. I think technically it is not possible because you cannot claim that you are have less income because you are already earning in US.

Actually you are able to get 9.25% on NRE FDs. This was done by almost all banks when the value of rupee hit %4 to a dollar. This was to get money flowing into India. SBI gave 9.25% for 10 years, ICICI has it for 8.75%, Axis bank for a very brief period had it for 9.5% . I don't know long these rates will last for NRE.

Also, your calculation of NRO and TDS, you right about the 8.25% but you can also get back the TDS money, if you file your Indian taxes and your income is less than the taxable slab. Even tough the compounding interest will work at 8.25% as you have mentioned, you can still get the rest of TDS by filing your Indian taxes.

[rpat1968]

You don't need to file FBAR. FBAR is filed only when you had a current total balance of >= $ 10,000 in overseas bank account, Stocks, LIC as of 31 Dec 2011 (or previous years if you are filing an amendment).

Do you have to file FBAR if you sent money to your parents or relatives for their expenses, let's say house renovation or car purchase? I've sent less than 10K over the past few years. I personally do not have any bank acct in India, NRE or Otherwise. So, I always sent money to my parents whenever they needed it.

Also, I just now opened a LIC Policy on my recent trip to India. As the premiums accumulate to $10K on this policy, do I then file FBAR?

[mnkaushik]

As mentioned in my previous post you can get Certification of U.S. Tax Residency (Form 6166 - ) from IRS and send it to your bank with other details (banks will provide what other documents they need) and they will start deducting a TDS at 15.45% instead of the regular 30.9%.

Also now ICICI bank gives you access to your TDS details directly from Indian Income Tax
department site. (this is only if you have provided a PAN number to your bank so that tHe TDS info is properly updated to your account)

I was not aware of filing income tax returns in India to get a refund of TDS. I think technically it is not possible because you cannot claim that you are have less income because you are already earning in US.

The Tax you file in India is for the income you get in india and not all your income. I came to the US in 2000 but i have not stopped filing my income tax in India. Why would you want to lose 15% of your interest money to TDS and not reclaim it. I have other income like rent but i did it even before I got rent. If you ever had to pay income tax then you can use that towards your US tax too.

[Madhuri]

I did the same about 5 years ago. When I decided to file the FBAR I amended my tax returns and refiled US taxes to include my overseas interest and capital gains income.
If you have not declared FBAR then the best solutions is to amend previous years tax returns to include your interest income and then file FBAR.

If the money is held in Indian mutual funds then the profit is considered as income only when we take out the money. Till then we do not have to include that profit as income on US tax returns, is that a correct statement?

Other scenario, when NRE account is linked directly to SIP mutual funds, and for any given period the money in NRE account is less than 10k, then do we need to file FBAR?

[desi485]

rpat1968,

Thanks for the details. Very helpful info for many of us.

One question, the interest rates on NRE deposits are very attractive now. Would it be wise to keepe those deposits below 10K to avoid FBAR filing? Or do you think, FBAR filing is no big deal and should not be a factor in making decisions on overseas investments.

Nikh,

I think it is the total value of all the accounts. In other words, if you open two account with 9K balance in each (totalling 18K), you still are required to file FBAR as total value of your overseas account is more than 10K.:D

[skyspoint]

I have SBI joint account, savings - Primary is my mother in india and me, I never used this account for any personal transactions or issued any checks or has no interest in it. Do I need to file FBAR for this account. Please advice.

[skyspoint]

I have SBI joint account, savings - Primary is my mother in india and me, I never used this account for any personal transactions or issued any checks or has no interest in it. Do I need to file FBAR for this account. Please advice.

But this account was maintained with >$10,000.

[mnkaushik]

If the money is held in Indian mutual funds then the profit is considered as income only when we take out the money. Till then we do not have to include that profit as income on US tax returns, is that a correct statement?

Other scenario, when NRE account is linked directly to SIP mutual funds, and for any given period the money in NRE account is less than 10k, then do we need to file FBAR?

You need to file FBAR, if the sum of all accounts that is your Mutual funds, NRE saving account, etc are over 10K. So if the sum of your Mutual fund + NRE is > 10K then you need to file FBAR.

Again, i cant stress it enough that even if your sum < 10K, you still need to pay taxes here in the US for any interest or dividends paid out. FBAR is just tracking of foreign accounts and please don't think that if you file FBAR you are fine, you still need to pay taxes that is different from FBAR.

[mnkaushik]

But this account was maintained with >$10,000.

First of all, according to Indian Banks, an NRI cannot can have a joint account with a resident Indian. I had to remove my name from all my joint accounts with my Dad, Mom and Brother. You cannot have a standard Indian bank account, you can be part of only NRO and NRE accounts. By definition of those accounts, your mom cannot be part of those accounts as joint account holder but you can give her Power of attorney to manage those accounts.

But a lot of people have such accounts. Now, should you report an Indian rupee account here, i guess so. FBAR is about any financial account you have some level of ownership and by being a joint account holder you have ownership of the account. Again, I don't know how it works since your mom is primary and if you need to pay penalty. I would say best would be to remove your name from the account and may be make yourself a beneficiary since you really don't use that account and it is your mom's.

[gclabor07]

How were you able to get investment account on your US NRI status and invest in mutual funds with your NRE account? I'm curious. I always thought that US has rules that prevent its residents (i.e. classified by IRS as US Resident Alients for tax purposes) from investing directly in stock markets of another country.

If the money is held in Indian mutual funds then the profit is considered as income only when we take out the money. Till then we do not have to include that profit as income on US tax returns, is that a correct statement?

Other scenario, when NRE account is linked directly to SIP mutual funds, and for any given period the money in NRE account is less than 10k, then do we need to file FBAR?

[Madhuri]

I guess we can do that from NRE account. I started that SIP in 2008 after talking with a good financial consultant who also was NRI once upon a time. By doing so you can repatriate the money back to NRE after paying taxes on the profits. I think we will be paying those taxes to Indian government.

[Madhuri]

You need to file FBAR, if the sum of all accounts that is your Mutual funds, NRE saving account, etc are over 10K. So if the sum of your Mutual fund + NRE is > 10K then you need to file FBAR.

Again, i cant stress it enough that even if your sum < 10K, you still need to pay taxes here in the US for any interest or dividends paid out. FBAR is just tracking of foreign accounts and please don't think that if you file FBAR you are fine, you still need to pay taxes that is different from FBAR.

Thanks for your reply. For paying taxes on any interests or dividends, do you know what is the limit after which we have to pay taxes on interests and dividends earned?

[desi485]

Thanks for your reply. For paying taxes on any interests or dividends, do you know what is the limit after which we have to pay taxes on interests and dividends earned?

I think you have to file taxes no matter what. I am not sure if there is any lower limit. Your all income combined puts you in certain bracket and that decides your numbers. However I am not tax professional, so you should ask your CPA.

[skyspoint]

First of all, according to Indian Banks, an NRI cannot can have a joint account with a resident Indian. I had to remove my name from all my joint accounts with my Dad, Mom and Brother. You cannot have a standard Indian bank account, you can be part of only NRO and NRE accounts. By definition of those accounts, your mom cannot be part of those accounts as joint account holder but you can give her Power of attorney to manage those accounts.

But a lot of people have such accounts. Now, should you report an Indian rupee account here, i guess so. FBAR is about any financial account you have some level of ownership and by being a joint account holder you have ownership of the account. Again, I don't know how it works since your mom is primary and if you need to pay penalty. I would say best would be to remove your name from the account and may be make yourself a beneficiary since you really don't use that account and it is your mom's.

I have an NRE account and also Joint account with SBI - I was withdrawn from the Joint account recently and my name was removed. Now it's only my mom's. I requested for 2010 statement and it came with my mother name. How it works now??? - do I need to file FBAR for NRE only or both. My guess is both, any suggestion would be helpful.

[desi485]

I have an NRE account and also Joint account with SBI - I was withdrawn from the Joint account recently and my name was removed. Now it's only my mom's. I requested for 2010 statement and it came with my mother name. How it works now??? - do I need to file FBAR for NRE only or both. My guess is both, any suggestion would be helpful.

Do the right thing. If you had your name as a joint account holder "even for one day" in that calendar year, you are required to file FBAR.

This is my personal opinion, consult a good CPA. You May can also call IRS Help line 800 number and they are very helpful guiding us.

[rpat1968]

Here is some useful information about filing overseas interest & dividend income -

Filling out Schedule B, reporting interest and dividend income, line-by-line. (http://www.bankrate.com/brm/itax/news/20010402g.asp)

If you have never filed FBAR and are planning to file this year you need to contact a CPA.
( I am telling you this because you may need to amend previous Tax returns to declare income from previous years. Talk to a good Desi CPA. In Dallas PerfectTax CPA firm has been helping lot of people)

Thanks for your reply. For paying taxes on any interests or dividends, do you know what is the limit after which we have to pay taxes on interests and dividends earned?

[LondonTown]

Can I start filing the FBAR from 2011 onwards...

and do not do any thing for past years? I have accounts since last 8-9 years... I may have find the statements (not sure if previous periods account statements are available online)

Or it is mandatory to file for all years.

[Deepak123]

So I filed FBAR last year due to my NRI account which I transferred lot of money so that my brother could buy a house in india. However somehow didnt declare other 2 local savings account (one is dormant) which hardly had 30000 Rs (<1000 USD) and might have earned 1000 Rs interest (<100 USD). This year I got to know these stringent rules properly and am showing all the accounts, so I assume I have to submit ammended FBAR for last year + FBARs for past few years ? If so till what point in time does one have to go back? Also guess all the tax returns will need to be refiled (BIG pain for all the alien residents :confused: )

Posting some links for others use
Comparison of Form 8938 and FBAR Requirements (http://www.irs.gov/businesses/article/0,,id=255986,00.html)
Comparison of 8938 and FBAR (TD F 90-22)
(Guess Insurance policies like LIC are also covered .. damn .. luckily real-estate doesnt matter - so having a flat/house should be ok)


FBAR form (TD F 90-22 form) -
http://www.irs.gov/pub/irs-pdf/f90221.pdf

Treasure $ exchange rate (rate on last day of the year from this site is used for converting to USD amount for that particular year ... this gives rates only for 2011 and 2010 .. wonder where to get rates for prior years)
Treasury Reporting Rates of Exchange (http://fms.treas.gov/intn.html#rates)

Question - So if IRS is taking tax on foreign earned interest, part of which is the income which was not earned in US (i.e. if someone was working in India for a while and had a bank balance and earns interest on that etc.), then can taxpayer also deduct Foreign insurance policy premiums and home loan payments in his tax returns (guess its a two way street, right)? Has anyone done this in previous years and did they face any issues claiming these deductions? Please advise.

[Deepak123]

Also since lot of resident aliens out here may not have filed previous years FBARs (if applicable > 10K) or indicated interest income from indian savings accounts, are all of us supposed to go through Voluntary disclosure process?

I was going through below article on volunatry disclosure. Though 2009, it indicated that there is a risk for quiet disclosures #10)
Voluntary Disclosure: Questions and Answers (http://www.irs.gov/newsroom/article/0,,id=210027,00.html)
"Those taxpayers making “quiet” disclosures should be aware of the risk of being examined and potentially criminally prosecuted for all applicable years."

Also how does get all the statements for past 6 years, without traveling to india.

gosh, this surely is messed up for most resident aliens :eek: (I guess most desis will fall in this boat or its just few of us)

Anyone gone through volunatry disclosure last year or this year, please provide some information.